Save Money on Holiday Shopping

Avoid This Sneaky Retail Trick!

Retail stores have a clever way to get you to spend more: the "decoy effect." Behavioral research conducted by Dan Ariely, Ph.D., of Duke University, has shown that when customers are given a choice between two products, one of which is priced lower and is of lower quality (say, an MP3 player that holds fewer songs), they'll often choose the cheaper one. But when a third (decoy) item is introduced at an even higher price, shoppers are more likely to opt for the mid-priced one  that is, adding another product nudges shoppers up the price scale instead of making them stick with the bargain buy. So think carefully when you see a display of products at varied prices, and hold steady at the price you can afford.

Be an ANGEL This Season

Let's say your retired dad, who has a bad back, really needs his yard cared for, but because he's on a fixed income, he can't afford it. Here's a plan: Create a page on GoFundMe (gofundme.com) to help raise the money. GoFundMe is a site where you can set up a project  like "Save Dad's Lawn!"  and invite friends and relatives to donate toward your set goal (say, $500 for the coming year). Thousands of people have used it, so this season, put it to work for a loved one in your circle.

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